According to Flippo

HRM is the Planning,Organising ,Directing

and Controlling of the
procurement,development
,compensation ,integration,maintenance
and separation of human resources th the
end that individual organisational and
social objectives are accomplished
Eg. Definition by E.F.L.Breach, Richard
Calhoon, R.G. Gokhle

Over the past few years with the radically

changing business environment, human
resource have taken the centre stage.
Consider the following examples
Adi godrej: it is really important for me
to spend more time with my people. We
have had a number of HRD consultants,
but HRD initiatives are time consuming
and one has to be patient for cultural and
mind set changes.
PHILIPS: According to Ramachandran ,
MD Philips india my human resource
department is the center of competence

A.F. FERGUSON & co. : Arvind mahajan ,

director the only way you can be different
is in the way you manage people
Brian Friedman : it is important to realize
that employees are your greatest asset.
Unlike other assets, people are the only
asset, which does not ,depreciate over time.
On the contrary, the more you use them,
the better you get over time. There value
keeps on appreciating with the passes of
time( on his visit to India 1998)
HUL : at Hindustan liver the accent is on
hiring

People who are even better than the

ones at HUL. HUL now is a people and
strategy company.
MARICO INDUSTRIES: Harsh mariwala,
owner I am very sensitive about losing
star performers. If the guy is valuable, we
give him for higher remuneration to keep
him happy.

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)

Pervasive Force-It permeates all levels of

management in an organisation.
Action Oriented
Individually Oriented
People Oriented
Future Oriented
Development Oriented
Integrating Mechanism
Comprehensive Functions
Auxillary Service-HR manager is a specialist
advisor.It is a staff function.
Inter-Disciplinary Function
Continous Function

To help the Organisation reach its goals.

To employ the skills and abilities of workforce.
To Provide the Organisation with well Trained
and well motivated employee.
To Increase to the fullest the employees job
satisfaction and self Actualization.
To develop and maintain a quality of work
Life.
To communicate HR policies to all employees.
To be ethically and socially responsive to the
needs of society.

1)

2)

3)

All major activities in the working life of a

worker from the time of his or her entry into
an Organization until he or she leaves.
Personnel Aspect-Manpower
Planning,Recruitment,Selection,Placement.
Welfare Aspect-Canteens,Creches,rest and
lunch rooms.
Industrial Relation Aspect-Union
management relations,Joint consultations.

Social Significance
Professional Significance
Significance for individual enterprise.

Product
Subsystem

HR Subsystem

Finance
Subsystem

Procurement
Training
Compensation
Appraisal
Rewards

Technical
Subsystem

Marketing
Subsystem

External Environment
Competition
Government Policy
Technology
Market Trends
Economics Factors
corporate
Strategy

Business
Strategy

Internal Environment
Culture
Structure
Policies
Skills
Past Strategy

Pans
regulating
Employment

emen
t
Devel
opme
nt

HR Strategy
HR Planning
Design of jobs and
work system

What workers
do
What workers
need
How jobs interface
with others

HR
Information
system

Perfor
manc
e
Mana
geme
nt
Comp
ensati
on

Outcom
es
Increas
ed
perform
ance
Custom
er
satisfac
tion
Employ
ee
Satisfac
tion
Entera
nced
Share
holder
value

Labou
r
A Model of Strategic Human Resources Management
relatio
(adopted
from Mello)
n

Function of HRM

Managerial functions of HRM

Plannin
g

Organizin
g

directing coordinatin controlling

g

Employment
Organizati
onal
design

Job
design
Job
Analysis

Operative functions of HRM

HUMEN
RESOURCE
PLANNING
RECRUITME
NT
SELECTION
INDUCTION
PLACEMENT

Human
Resource
Development
PERFORMANCE
APPRAISAL
TRAINING
MANAGEMENT
DEVELOPMENT
CAREER
PLANNING &
DEVELOPMENT
ORGANIZATION

Compensation
Management
JOB
EVALUTION
WAGE &
SALARY
ADMINISTRATI
ON
FRINGE
BENEFITS

Human
MOTIVATION
Relations

MORALE
JOB
SATISFACTION
COMMUNICATIO
N
GRIEVANCE &
DISCIPLINARY
PROCEDURE
QUALITY OF
WORK LIFE &
QUALITY CIRCLES

DIFFERENCE B/W TRADITIONAL AND STRATEGIC HR

Point of
distinction
Focus

Traditional HR
Employee Relations

Role of HR

Transactional change follower

and respondent

Initiatives

Slow, Reactive, Fragmented

Time horizon
Control
Job design
Key
investments
Accountabilit
y
Responsibilit

Short-term
Bureaucratic-roles, Policies,
Procedures
Tight division of labour,
independence, specialization
Capital, products
Cost centre
Staff specialists

Strategic HR
Partnerships with internal
and external customers
Transactional change
follower and respondent
fast, proactive, and
integrated
Short, medium and
long(as required)
Organic flexible,
whatever is necessary to
succeed
Broad ,flexible, crosstraining teams
People, knowledge
Investment centre

Role of Personnel
Manager

Administrative
role
a) Policy maker
b)
c)
d)
e)
f)
g)

Administrative expert
Advisor
Housekeeper
Counselor
Welfare officer
Legal consultant

Operational role
a) Recruiter
b) Trainer developer ,
motivator
c) Coordinator/linking pin
d) Mediator
e) Employee champion

Strategic role

Cost of HR vs. Value Added Services of

HR
HR
Costs

10%
30%
60%

Strategic
(Planning)
Operational
(Service
delivery)
Administrative
(Record
keeping and
compliance)

HR
Value
added

60%
30%
10%

Problem solving Technique

Intelligence
Leadership Qualities
Capacity for Persuasion
Integrity
Coordination
Sense of Vocation
Cooperation
Feedback

Dimensions

Personnel
Management

Human Resource
Management

Employment Contract

Careful delineation of
written contracts

Aim to go beyond
contract

Rules

Importance of devising Can do, outlook,

clear rules
impatience with rule

Go to management
Action

Procedures

Business need

Behavior Referent

Norms/customs and
practices

Values/mission

Managerial Task vis-vis Labor

Monitoring

Nurturing

Key Relations

Labor Management

Customer

Initiatives

Piecemeal

Integrated

Speed of Decision

Slow

Fast

Management Role

Transactional

Transformational
leadership

Communication

Indirect

Direct

Prized Management

Negotiation

Facilitation

Selection

Separate ,marginal task

Integrated, key task

Pay

Job evaluation(fixed
grades)

Performance related

Conditions

Separately negotiated

Harmonization

Labor Management

Collective bargaining
contracts

Individual contracts

Job Categories and

Grades

Many

Few

Job Design

Division of labor

Team work

Conflicts Handling

Reach temporary truce

Manage climate and

culture

Training and
Development

Controlled access to
courses

Learning companies

Focus of Attention for

Interventions

Personnel procedures

Wide ranging cultural,

structural and personnel
strategies

Respect for Employees

Labor is treated as a tool People are treated as

which is expendable and assets to be used for the
replaceable
benefit of an
organization, its
employees and the

INTERNAL
ENVIRONMENT

HRM
ENVIRONMEN
T

EXTERNAL
ENVIRONMENT

EXTERNAL
ENVIORNMENT
Technologi
cal Factors

Economic
Factors

PoliticalLegal
Factors

Social and
Cultural
Factors

Unions

HRM

Professionalis
m

INTERNAL ENVIORNMENT
HR
Systems

Organizatio
nal
Structure

Organizatio
nal
conflicts

Mission

HRM

Policies

Organizationa
l
Culture

People are the real assets of an

Organization
HRD= HUMAN RESOURCE+DEVELOPMENT

DEFINITION OF HRD:
According to Rogers
HRD is a holistic concept in corporating
intrinsically social, cultural and spiritual
dimensions to build capacity and
empower People.

1)
2)
3)
4)

Planned and Systematic approach.

Continous Process.
Inter Disciplinary Approach.
Both micro and macro aspects.

OBJECTIVS
OF HRD

EQUITY

EMPLOYABILI
TY

ADAPTABILITY/
COMPETITIVEN
ESS

FUNCTION OF
HRD

DEVELOPME
NT
FUNCTION
Training ,
Learning &
Development
Career Planning
&
Development
Performance &
Potential
Appraisal
Employee
Empowerment

MAINTENANC
E
FUNCTION
Employee,
Counseling,
Coaching &
mentoring
Quality of
work life

CONTROL
FUNCTION
HRD audit

Governance
Of Ethics

Difference between HRD and Personnel

Function
POINTS OF
DISTINCTIO
N

PERSONEL FUNCTION

HRD

Orientation

Maintenance oriented

Development oriented

Structure

An independent function with

independent sub-functions

Consists of inter-dependent
parts.

Philosophy

Reactive function, responding to

events as and when they take
place

Proactive function, trying to

anticipate and get ready with
appropriate responses.

Responsibilit
y

Exclusive responsibility of
personnel department

Responsibility of all managers

in the organization

Motivators

Emphasis is put on monetary

rewards

Emphasis is on higher-order
needs such as how to design
jobs with stretch, pull and
challenge; how to improve
creativity and problem solving
skills, how to empower people
in all respects. Etc.

Outcomes

Improved performance is the

result of improved satisfaction
and morale

Better use of human

resources leads to improve
satisfaction and morale.

ROLE AND RESPONSIBILITIES OF HRD MANAGER

Role and
responsibility of
HRD Manager

1) HRD Strategic advisor

2) HRD System designer and
developer
3) Organisation change consultant
4) Organisation design consultant
5) Learning programme specialist
6) Instructor/Facilitator
7) Individual Development and
career consultant
8) Performance Consult
9) Researcher

1)

2)

The major principles of human resource

development are:
Principles of Development of Organizational
capability: Human resource development
systems should help the organization to
increase enabling capabilities.
Principles of Potential Maximization: Human
resource development systems should help
individuals to recognize their potential and
help them to contribute their best towards
the various organizational roles they are
expected to perform and excel in it.

3. Principle of autonomy maximization :

Human resource development systems
should help maximize individual
autonomy through increased
responsibility.
4. Principle of maximum delegation:
Human resource development systems
should facilitate decentralization through
delegation and sharing of responsibility.
5. Principle of participative decision making:
Human resource development systems
should
facilitate participative decision making.

6. Principle of change management:

Human resource system should attempt
to balance the current organizational
culture with changing culture
7.Principle of periodic review:
There should be a continuous review and
renewal
of
the
human
resource
development function.

STRATEGIC + HRM = SHRM

Definition- according to wright and Mc
Mohan SHRM is the pattern of planned
human
resources
actions
and
deployments intented to enable the firm
to achieve its goals.

Long termed focus

Linkage between HR and Strategy
process
Effective performance
Fosters corporate excellence skills
a) Creative insight b) Sensitivity
c) Vision
d) versatility
e) Focus
F) patience

FUNCTIONS OF SHRM
HIGH
ORGANISATION
PERFORMANCES RE-ENGINEERING
HRM PRACTICS

UNIVERSALISTIC
APPROACH
CONTINGENCY
APPROACH

TRANSFORMATION
AL LEADERSHIP

HR PRACTICE
HR PRACTICE

WORK
PLACE
LEARNING

ASSESSING HR
EFFECTIVENESS

ORGANISATION STRATEGY
ORGANISATION STRATEGY

ORGANISATION STRATEGY

CONFIGURATIONAL
APPROACH

HR PRACTICE

ORGANISATION PERFORMANCR

ORGANISATION STRATEGY

THREE LEVEL OF STRATEGIC HUMAN RESOURCE MANAGEMENT

Human Resource Management
as part of strategic management

Vertical
Integration

Organisation

Human Resource Strategies

Horizontal
Integration

HRM Function

Strategic Management of Single

HRM areas
HR Sub-functions

Selection,Appra
isal,Rewards,D
evelopment

Three levels of SHRM

1.Selection, appraisal, reward, development:
The first step is to select, retain develop and utilize competent
human resources.
2. Horizontal integration:
then, the organization shall practice all relevant human resources
policies and practices in line with human resources strategy so that
human resources and human resources strategies are perfectly
aligned in the desired direction.
3. Vertical integration:
Then the human resource strategies are to be fit with
organizational strategic management process so that the
organization can achieve competitive advantage in its industry
Thus organizational strategic management process is the superordinate
activity and human resources strategy is a part of it and contribute
in the attainment of organizational strategic objective effectively

STRATEGIC MANAGEMENT PROCESS

Strategic management process refers to
the entire scope of strategic decision
making in an origination, as it can be
defined as the set of managerial
decisions that relates the organization to
its
environment,
guides
internal
activities, and determines the long term
performance of the organization.

STRATEGIC MANAGEMENT PROCESS

Mission And Goals
Step 1

Management philosophy
Values
Environmental Scanning

Step 2

Internal Scan
External Scan
Strategic Formulation

Step 3

Strategic Choice
Corporate
Business
Functional
Strategy Implementation

Step 4

Leadership
Structure
Control Systems
Human Resources
Strategy Evaluation

Step 5

Operating Performance
Financial Performance

CUSTOMER SERVICE DIMENSION

Physical
Facilities
and
Equipment
s
Confidenc
e in
Employee
Knowledge
Dependable
and
Accurate
performanc
e

Service
Excellence

Timely
Assistance

Care and
Concern

RECRUITMENT

EMPLOYMENT
LEGISLATION

SELECTION

DISCIPLINE

MOTIVATION

DEVELOPMENT

HRM

PRODUCTIVITY
TRAINING

TRADE
UNIONS

REWARD
DDD
SYSTEM

1.

2.
3.

4.

5.

ASSIGNMENT 1

Define the objectives and nature of

HRM
Discuss the functions of HRM
Elaborate the functions and
responsibilities of personnel
management. How it is different from
HRM
Explain the concept of HRD, how it si
different from personnel function
Define the features, functions, and
process of SHRM